Press release: AMD REPORTS FIRST QUARTER RESULTS
Date : 2001-04-19
SUNNYVALE, CA - April 18, 2001 - AMD today reported sales of $1,188,747,000
and net income of $124,837,000 for the quarter ended April 1, 2001. Net
income amounted to $0.37 per diluted share. The company reported record
sales and record unit shipments of PC processors, led by strong sales of its
seventh-generation AMD AthlonÔ and AMD DuronÔ processors.
Total sales grew by 9 percent over the like period of 2000 while increasing
by 1 percent from the immediate-prior quarter. In the first quarter of 2000,
AMD reported sales of $1,092,029,000 and net income of $189,349,000, or
$0.55 per diluted share. The company noted the tax rate for the
just-completed quarter was 32 percent versus zero in the comparable period
of 2000. In the fourth quarter of 2000, AMD reported sales of
$1,175,172,000, and net income of $177,968,000, or $0.53 per diluted share,
with a 15 percent tax rate.
AMD sold more than 7.3 million PC processors, including 6.5 million
seventh-generation AMD Athlon and Duron processors. Average selling prices
(ASPs) increased from the immediate-prior quarter on the richer product mix.
Total PC processor sales, at $661 million, increased 17 percent from both
the comparable quarter of 2000 and the immediate-prior quarter.
"AMD had an excellent quarter in a challenging economic environment," said
W.J. Sanders III, chairman and chief executive officer. "The superiority of
our seventh-generation PC processors enabled AMD to achieve record PC
processor sales in both dollars and units even as the industry worked
through inventory issues in a softening economy. Our success in the PC
processor arena reflects continuing excellent execution as well as our
ability to supply products with more delivered performance that enhance the
competitiveness of our customers.
"New product introductions during the quarter strengthened and broadened our
PC processor portfolio," Sanders continued. "We commenced volume shipments
of our newest, power-managed AMD Athlon processors, code-named \'Palomino,\'
for the mobile PC market segment. Palomino processors feature an enhanced
core and our proprietary PowerNow! technology, which dynamically adjusts the
frequency and voltage of the processor based on the performance demands of
the software, enabling a significant reduction in power consumption in
mobile applications. PowerNow! technology is just one example of the better
ideas from AMD that have elevated us to contention with IBM for the number
two global ranking in U.S. patent issuances relating to large-scale
integration processes and devices in 2000.
"AMD also introduced 1.3-gigahertz (GHz) and 1.33-GHz desktop versions of
the AMD Athlon processor in the first quarter. Earlier this month, AMD
introduced a 900-megahertz version of the AMD Duron processor, the
industry\'s highest-performance processor for the value segment of the
"With these additions to our PC processor offerings, we have a compelling
solution for the performance mobile PC market where we have heretofore
lacked a competitive offering while extending our performance leadership for
desktop PC applications," Sanders continued.
"Sales of flash memory products, reflecting a sharp decline in demand from
the communications sector of the economy, declined by approximately 10
percent sequentially to $411 million," Sanders continued. "Our broad product
offering, excellent relationships with major customers, and long-term
purchase agreements helped to mitigate the effects of this challenging
environment and achieve 26 percent growth in flash memory product sales over
the like period of 2000.
"We gained market share last quarter in both PC processors and flash memory,
the focal points of our growth strategy," Sanders said.
"Sales of our seventh-generation processors (AMD Athlon and AMD Duron
processors) grew 27 percent sequentially and 126 percent year-on-year.
Demand for our highest-performance AMD Athlon processors remained strong and
we shipped more than 2 million 1-GHz and faster devices. Going forward, we
plan to continue our aggressive production ramp in Fab 30 in Dresden, which
will be the source of our highest-performance AMD Athlon processors,
including the new power-managed versions," Sanders concluded.
The company\'s outlook statements are based on current expectations. The
following statements are forward-looking, and actual results could differ
materially. The company\'s current outlook is based on the following
The company currently expects that, in the seasonally slow second quarter
for PC sales, the enhanced competitive position of AMD-based solutions will
enable maintenance of PC processor unit sales at near-record levels
comprised totally of seventh-generation products. The company currently
expects PC industry unit growth in the high single-digit range for 2001 as a
Uncertainties regarding the level of demand for flash memory products in a
continuing soft communications sector makes forecasting memory product sales
extremely difficult. The company currently projects that second quarter
sales of flash memory products will decline sequentially.
AMD\'s other IC products and foundry services, which currently account for
less than 10 percent of corporate revenues, will continue their decline both
in absolute terms and as a percentage of total revenues.
Accordingly, in this uncertain climate, AMD expects that overall second
quarter revenues could decline by as much as 10 percent sequentially,
depending on market conditions.
For the year as a whole, on modest sales growth in a declining market, the
company expects to earn $1.50 per diluted share, consistent with First Call
consensus earnings estimates.
AMD will hold a teleconference for the financial community at 2:30 PM
Pacific Standard Time today to discuss first-quarter financial results. AMD
will provide a real-time audio broadcast of the teleconference on the
Investor Relations page of its web site at http://www.amd.com or
http://www.streetfusion.com. The webcast will be available for two weeks
after the teleconference.
This release contains forward-looking statements, which are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that forward-looking statements in this
release involve risks and uncertainty that could cause actual results to
differ materially from current expectations. There can be no assurance that
demand for the company\'s products will continue at currently expected
levels, that the company will grow sales for the year, or that it will meet
earnings per share estimates.
Risks also include the possibility that global business and economic
conditions will worsen; that demand for personal computers and, in turn,
demand for the company\'s PC processors will be lower than currently
expected; that Intel Corporation pricing, marketing programs, new product
introductions or other activities targeting the company\'s processor business
will prevent attainment of the company\'s current PC processor sales plans;
that the company will not continue to be successful in ramping production of
the company\'s highest performance processors in Fab 30; that the company
will not be able to produce AMD Athlon and AMD Duron processors in the
volume, speed mix or with the feature set necessary to meet market
requirements and the company\'s current plans and goals; that third parties
may not provide timely or adequate infrastructure solutions to support the
AMD Athlon and AMD Duron processors; and that changes in customer needs and
the product introductions and capacity expansion of competitors will effect
the demand for the company\'s flash memory products. We urge investors to
review in detail the risks and uncertainties in the company\'s Securities and
Exchange Commission filings, including but not limited to the report on Form
10-K for the year ended December 31, 2000.
AMD is a global supplier of integrated circuits for the personal and
networked computer and communications markets with manufacturing facilities
in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and
Standard & Poor\'s 500 company, produces microprocessors, flash memory
devices, and support circuitry for communications and networking
applications. Founded in 1969 and based in Sunnyvale, California, AMD had
revenues of $4.6 billion in 2000. (NYSE: AMD).
WORLD WIDE WEB: Press Announcements and other information about AMD are
available on the Internet via the World Wide Web. Type http://www.amd.com
at the URL prompt.
AMD, the AMD logo, AMD Athlon, AMD Duron and combinations thereof are
trademarks of Advanced Micro Devices, Inc. in the United States and other